How to Get Started in Crypto: A Beginner’s Guide to Digital Assets

When people think of cryptocurrencies, Bitcoin is usually the first that comes to mind. However, the crypto market has evolved far beyond a single coin. Today, there are thousands of cryptocurrencies serving different purposes, from payments and smart contracts to tokenized assets.

Cryptocurrency is digital money powered by blockchain technology. Unlike traditional currencies, it is free from government or bank oversight. Bitcoin transactions, for example, take just minutes and often come with lower fees than traditional payment systems.

In 2025, this is more relevant than ever. Inflation, transfer restrictions, and banking crises are pushing people to seek alternatives. And many are looking to get started in crypto.

However, the crypto market isn’t just about opportunities—it also comes with significant risks. Prices can soar within days and plummet just as fast. Some projects exist solely to scam investors, preying on those drawn to risk and speculation. Additionally, regulations vary by country—some recognize crypto as a legitimate asset, while others impose outright bans.

To get started in crypto safely, it's essential to understand how the system works. In this guide, we’ll break down how to choose a wallet, where to buy crypto, how to store it securely, and what to watch out for to protect your money.

Step 1: Understanding Crypto Basics – What’s Really Going On?

Cryptocurrency is a digital asset that exists only online. Unlike dollars or euros, it has no physical form, no issuing bank, and no central authority overseeing transactions. Instead, all operations are recorded on a blockchain—a decentralized ledger that is publicly accessible.

Blockchain acts as a public ledger, where every transaction is visible and verified by thousands of computers worldwide. This makes the system resistant to fraud and hacking. Modifying data in a blockchain would require rewriting the entire transaction history, which is either impossible or so costly that it becomes economically unfeasible.

Related: Private vs Public Blockchain: What’s the Difference?

Bitcoin, Altcoins, and Stablecoins: What’s the Difference?

Bitcoin (BTC) 

Launched in 2009, Bitcoin was the first cryptocurrency, created as an alternative to traditional money. Bitcoin’s total supply is capped at 21 million coins, making it similar to “digital gold” due to its scarcity and mining difficulty. Many investors view BTC as a store of value and a hedge against inflation.

Altcoins 

Altcoins refer to all cryptocurrencies other than Bitcoin. Some aim to solve Bitcoin’s limitations, such as slow transaction speeds, while others introduce new use cases and innovations. For example, Ethereum (ETH) supports smart contracts—self-executing programs that run on the blockchain based on predefined conditions. Today, thousands of applications are built on Ethereum, including NFT platforms, decentralized exchanges (DEXs), and financial services.

Stablecoins

Stablecoins are cryptocurrencies pegged to traditional assets, backed by reserves held in specialized custodial accounts. For example, USDT and USDC maintain a stable value of $1, as each token is backed by an equivalent amount of U.S. dollars. Stablecoins are widely used in the crypto ecosystem for trading, fast transactions, and protecting funds against market volatility.

Understanding the differences between these assets helps you decide how to use cryptocurrency effectively: 

• If you need an asset for long-term holding, Bitcoin is the best choice.
• If you're looking for investment opportunities, explore altcoins.
• If you need stability and fast transactions, use stablecoins.

Step 2: Choosing and Setting Up a Crypto Wallet

Cryptocurrency isn’t just digital money; it’s an asset where you alone are responsible for its security. Unlike banks, where you can reset passwords or dispute transactions, crypto offers no such safety nets. Lose access to your wallet, and your funds are gone forever. That’s why choosing the right wallet is the first step to protecting your assets.

There are two types of crypto wallets: 

• Hot wallets
• Cold wallets

Hot wallets are connected to the internet, making them more convenient but less secure.

Cold wallets store private keys offline, providing stronger protection against hackers. 

Which one should you choose? It depends on how you plan to use cryptocurrency.

Hot Wallets: Convenient but Risky

Hot wallets are apps or browser extensions that remain connected to the internet. Popular choices include MetaMask, Trust Wallet, and Phantom. They are easy to use, offering quick setup, access on mobile and desktop, and seamless integration with crypto exchanges and decentralized applications (dApps).

However, security is a major concern. If hackers gain access to your device or trick you into signing a malicious transaction, you could lose your funds. For this reason, hot wallets are ideal for small amounts and daily transactions but not for long-term storage.

To start using a hot wallet, simply install the app or browser extension. Once installed, the wallet will prompt you to create an account. At this step, it’s essential to write down and store your seed phrase, as it is the only way to restore access.

Golden Rule: Never share your seed phrase with anyone!

Next is security configuration. Enable two-factor authentication (if available), create a strong password, and avoid using your wallet on untrusted websites. Once set up, your wallet is ready for use—it allows you to send and receive cryptocurrency, interact with DeFi apps, and store digital assets.

Cold Wallets: Protection Against Hackers

Cold wallets are physical devices that store private keys offline. The most popular models include Ledger and Trezor. These wallets allow users to sign transactions without an internet connection, making hacking attempts virtually impossible.

Related: Trezor Safe 5 Review

Cold wallets are the safest option for long-term storage. Even if your computer is infected with malware, your assets remain protected. 

The main drawback is cost, ranging from $50 to $200. However, for those holding large amounts of crypto, this is a justified investment in security.

Step 3: Where and How to Buy Crypto

To purchase cryptocurrency, you need to select a platform. This can be a centralized exchange (CEX), a crypto swap service, or a P2P marketplace. Each option has its own pros and cons, and the best choice depends on your goals and experience level.

Centralized Exchanges (CEX) are the most popular way to buy cryptocurrency. They provide a user-friendly interface, high liquidity, and fraud protection. Some of the most well-known exchanges include Binance, Coinbase, WhiteBIT, Kraken, and Bybit.

Benefits of crypto exchanges:

• Wide selection of cryptocurrencies

You can buy Bitcoin and hundreds of other digital assets.

• Convenient deposit methods

Support bank cards, wire transfers, and stablecoins.

• Security measures

Crypto exchanges store funds on their own servers, reducing the risk of loss or theft.

However, there are also drawbacks to consider. 

Most exchanges require Know Your Customer (KYC) verification, meaning you'll need to upload personal documents, wait for approval, and accept that your data will be stored in the exchange’s database. 

Another key factor is centralized control. Since the crypto exchange stores your funds on its servers, issues such as regulatory actions, account freezes, or hacking attacks could lead to temporary restrictions or even permanent loss of access to your assets.

For those seeking anonymity, there are two main alternatives: online crypto swap services and P2P platforms.

• Crypto Swap Services

These platforms act as intermediaries. The user transfers money, and the service sends the cryptocurrency to the wallet. It's quick and convenient, but the exchange rates are usually less favorable than those on crypto exchanges.

• P2P Platforms 

They allow you to buy cryptocurrency directly from other users. Here, you can find better exchange rates and use various payment methods (cards, cash, bank transfers). The downside is the potential risk of dealing with scammers.

Related: Crypto Swap Services vs Exchanges: Key Differences Explained

Step 4: Crypto Security Basics

The cryptocurrency market attracts not only investors but also scammers. People often lose money due to fake projects, hacks, and avoidable mistakes. Unlike traditional banks, the crypto world lacks customer support: if funds are sent to the wrong address or your wallet is hacked, it is impossible to recover the assets.

That’s why it’s essential to be aware of the common risks and how to protect yourself.

The main rule is: do not trust promises of guaranteed profits. If a project offers returns with no risks, it’s a scam. Many newcomers lose money by investing in Ponzi schemes, high-yield investment programs (HYIPs), and referral bonuses. These projects rely on new investors, but eventually, they collapse, and the creators disappear.

Related: Top 5 Celebrity Crypto Projects That Failed

Before investing in cryptocurrency, it is crucial to research the project behind it. Reliable tokens and platforms openly share their code, conduct independent audits, and ensure that their team members are publicly known. If there is little information available, and the developers promise a “revolution” but cannot explain how it works, there is a high chance of fraud.

Phishing is another method used to trick users into providing their sensitive data. In this scam, the fraudster convinces the user to enter their password or seed phrase on a fake website. Cybercriminals create replicas of crypto exchanges, wallets, and DeFi platforms, often changing just one letter in the domain name. The user visits the website, enters their details, and the scammer then steals their funds.

To avoid falling into traps, always verify the URLs of websites, use bookmarks to access exchanges and wallets, and steer clear of suspicious links. If someone on Telegram or Discord offers “quick profits,” sends a file to download, or asks you to send crypto “for activation,” there's a 99% chance they are scammers.

Related: WhiteBIT’s Cybersecurity Tips

Step 5: Keep Learning

Cryptocurrencies are not just investments; they are part of an ever-evolving ecosystem. Without keeping up with new technologies, it’s easy to lose money or miss out on potential opportunities. It’s not only important to buy crypto, but also to understand how to use it, track the market, and develop an investment strategy.

Cryptocurrency prices are volatile: today, BTC might be priced at $80,000, but in a week, it could drop to $45,000 or $55,000. The market reacts to news, regulatory changes, large transactions, and overall investor sentiment. Without staying informed and actively monitoring the situation, you risk buying at a peak or selling too early. 

That's why it's crucial to rely on trusted data sources, making decisions based on facts rather than emotions.

Related: The Crypto Infoverse: Crafting Your Personal Info Processing Hub

Getting started in crypto is an important process. 

Honestly ask yourself, “Why am I doing this?” Start small, and over time, you can learn about investing, trading, DeFi, and other opportunities within the crypto market. 

The key is to keep learning, verify information, and avoid chasing quick profits.